CNX--BANK NIFTY
Open—36497.30---High—36844--Low—36062.85---Close—36197.15 on 3.12.2021.
Support:36151.95/35977.97/35810.90/35531.35/35359.25/35327.90/34817.50/34115/33908/33273.95.
Resistance: -36525.95/36647/36655.40/36844//36876.35/37140/37232.20/37708.75/37891/38112.75/38377.25/38426/38932.45/39117.15/39292.80/40011.15/40160.20/41367.25/41829.60.
(Bold and underlined figures
are most important)
It opened on a flat to negative note
and then went up but could not sustain at the higher levels and slipped down
and finally closed with a loss of 311.10 points. It is above its long term correction
threshold point of 35761.25, so it
is out of long term corrective mode till
it holds this mark, yesterday it moved above its 3 pullback threshold points of 36458---36222---35933
and today it slipped down and is just above one point only which is a weak
sign. Please note that it has to move above its important pullback threshold
point of 36862.50 and long term
upholding threshold point of 36857(figure
will change every day) and sustain on the closing basis then only it can
have reasonable to good pullback up move else up move is doubtful and sustained
break below 35933 may end the
pullback up move chances. Furthermore it is still into medium term correction
mode. It is below its short term moving averages on the daily and the weekly
chart, below all its medium term moving averages and also below some of its
long term important parameters on the daily chart, which is a very weak
indication and if it does not bounce back sharply and move above at least some
of the key points in shortest possible time then the fall may continue. Moving
down further its other important support points are at 36151.95---35359.25---35327.90---35026---34817.50---34115---33908
(figure may change), please note that
it is decisively below its long term uptrend upholding point of 36857(figure will change every day) which is very concerning and if it does not
bounce back above it long term uptrend will be in danger, furthermore sustained break below 35037(figure will change every day) may end the long term up trend
and it may get into bear market. Similarly moving up it will face stiff
resistance from its critical points at 36525.95---36844---36876.35---37477---37591---37871---38033---38288---38541---40419---40727---41039
(figures may change) and to regain the steady up momentum again it
has to move above this range and sustain, chances of crossing this range and
sustain looks immensely weak at this point of time.
The overall short term technical
setup is terribly weak and long term uptrend is also in jeopardy now, therefore
the bias as of now is down.
It is
important to mention here that pullback rallies are treacherous in nature and
can end abruptly, it is therefore suggested that one should be extremely alert
and cautious in the long trade initiated for pullback gains.
It is important to mention here that it is below its all critical support points which are now
resistance points as mentioned above which is a bad sign. Furthermore, please
note that few important technical indicators are also weak on the daily and
weekly chart which indicates that it could seek much lower levels in coming
days/weeks with in between short
relief rallies; therefore it seems that the fall may continue if the technical
indicators or the price pattern does not improve drastically. To give some hope
for the up move to happen it has to close above36857 (figure will change every day) & 36862.50. Since it is in medium term corrective mode therefore sell on
the rise strategy should be adopted till visible sign of correction
completion emerges. The, short term bias is hugely weak and negative as of now.
In view of the above, it is into medium
term correction mode now and also below its important pullback threshold point
of 36862.50, therefore for safe
traders long trade should be avoided and can only be tried if it closes above 36862.50 and sustain for the pullback
gains. However, aggressive traders can try long trade if it moves above 36365 and maintain for some time or can
try buy on decline near 35700 but
not below it. I strongly caution here that long trade in a corrective mode
could be a highly risky affair; therefore one should be extremely cautious in
the long trade at this point of time, it is therefore suggested to avoid long
trade now. Please note that its long
term uptrend is in question now, therefore short
trade should be attempted on the rise at appropriate point or can be tried on
the price breakdown for taking advantage of the down move gains.
NOTE: - If it opens up with huge gap up then wait for
it to settle down before initiating long position, but short trade can be
attempted on huge gap up if it is near the selling point and vice versa .
Since, it is showing volatility so any type of trade should be squared off
during the day, if you don’t have reasonable profit margin in the trade. Day
squaring off is strongly suggested in any case.
TRADING STRATEGY (Suggested)
1. Buy if it moves above 36365 and maintain for some time with a
stop loss of 36170. It is for the aggressive traders and could be a highly
risky trade.
Or
Buy on decline near 35700 but not below it with a stop loss of
35600. It is for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near or
within the range of 36675--36775 with a stop loss of 36875. It could be a
highly risky trade but worth trying for intraday gains.
Or
Sell if it does not move
above 36365 in first one hour of trade with a stop loss of 36465. It could be a
risky trade but worth trying for intraday gains.
Or
Sell if it moves below
36020 with a stop loss of 36200. It could be a risky trade but worth trying for
intraday gains.
Disclaimer:-The view
expressed here are solely of the author and he is not at all responsible in any
way for the outcome of the trade you enter based on the above view.
Kindly note that make your cost your stop loss
in favorable trade and then trail it as the price move up/down
to gain maximum profit and avoid losses. Use support and resistance levels as
entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.
Note: Price stated
here are of spot market.
Contact me for strategic guidance to enter and
exit trade.
Thanks
Narendra Kumar Surana
suranank@gmail.com
Mobile—8240951127/9831313654.
